Some of the exporters, who have obtained exemption from shipping in the past few months are now in a tight spot as their losses are mounting by several folds during the past few months. Trade sources told The Financial Express that a number of exporters have amassed losses running to several crores of rupees as they failed to follow the market trend and sold in the international market at a discount in advance.

They said some of the short sellers have sought and obtained exemptions for shipping during the past couple of months but are now in a fix as the price shows no signs of abating.

Pepper prices during the last fortnight have increased by over 25 per cent and are still ruling high as internationalsupply scene is tight and the prices are showing an upward trend across the board. Ready pepper prices on an average have moved up to Rs 27,000 per quintal in October from Rs 22,000 per quintal in September registering a gain of over Rs 5,000 per quintal.

IPSTA president Kishor Shamji told The Financial Express that a major reason for the exporters to worry is that they have ignored the price signals from the market and heavily sold in the international market anticipating lower prices stemming from an estimated bumper crop much in advance. Some exporters have even sold pepper at $2.92-97 per pound range while the market price was ruling at $ 3.5 per pound, he said. ``Those who are suffering now are the ones who undercut the Indian price well in advance anticipating a bumper crop,'' he said.

Putting the blame squarely on exporters for their current plight, IPSTA president said those who have followed the price signals diligently had not suffered so far. ``There is no point in now complaining that IPSTAprices are artificial as they have sold at a discount much in advance,'' he pointed out. He said though pepper is available in India, growers are not bringing them to the market anticipating higher prices in view of the reports indicating a crop failure across the major producing nations. ``In October around 3,000 tonnes of black pepper was shipped from India taking the total exports during the current season to 40,000 tonnes. Add to this another 25,000 tonnes as domestic consumption at least 10,000 tonnes of stock is still available in India,'' he said.

Former president of IPSTA, Sanjay Mariwala has also concurred to the view and said that there was no point in exporters those who sold at a discount in advance to complain about the increase in price. He said since India is the only origin country it is natural for the prices to go up in the international market.

Saying that the futures market is a barometer for the pepper community, Sanjay said ``those who have followed the IPSTA trend has not sufferedand it is those who have ignored the IPSTA trend have suffered.'